EVO - Evolve Education

[Scrunch]

That’s in cold storage- the mop ups didn’t proceed- reasons- you guessed it- Covid

I thought it was just the ACT acquisition that was technically cancelled but possibly just put on Ice, with earlier acquisitions settled. With company valuations reducing it was probably a good call. If they need the cash at home, now they have more. If it’s still spare, go shopping again in Oz, but at cheaper prices. Win win. Unlike MET they had a contract they could get out of without being pulled into court.

[Snow Leopard]

Not commented on this for quite a while.

I still hold some (not many), though I sold all the ones I bought on the NZX and only buy, sell, hold on the ASX these days (greater turn-over and cheaper brokerage).

Covid-19 has not helped Evolve in the short-term but I still see a future for them where sub 8c a share is good value.
Whether I am right or not is another matter but only time will tell.

Here's to buy and hope subject to the next announcement and/or financials.

[sb9]

Finished up at 8.5c on ASX on a good volume, which is about 9.1c locally...see where it opens this morning.

Took a modest position last week on back of NZ moving to level 2 with day care centres opening fully and decent support for ECE teachers from Budget.

[Beagle]

Sister in law reported to me on Sunday the current CEO is much nicer. Paid all staff at their full rate throughout the lockdown. CEO seems to understand that happy and engaged staff are extremely important to the business. I suppose that's something. No idea whether this is a good investment or not but it has been a shocker so far. Every dog has its day or more of the same ?, DYOR and make up your own mind but FWIW I won't be investing.

[Cadalac123]

Sister in law reported to me on Sunday the current CEO is much nicer. Paid all staff at their full rate throughout the lockdown. CEO seems to understand that happy and engaged staff are extremely important to the business. I suppose that's something. No idea whether this is a good investment or not but it has been a shocker so far. Every dog has its day or more of the same ?, DYOR and make up your own mind but FWIW I won't be investing.

This was a great investment at 0.060

Some Australian centres acquired and top line management a lot better. The turnaround was actually somewhat showing results before coronovirus . I think it got heavily sold off but how long it takes to get back on the turnaround trajectory is another question .

[sb9]

Sister in law reported to me on Sunday the current CEO is much nicer. Paid all staff at their full rate throughout the lockdown. CEO seems to understand that happy and engaged staff are extremely important to the business. I suppose that's something. No idea whether this is a good investment or not but it has been a shocker so far. Every dog has its day or more of the same ?, DYOR and make up your own mind but FWIW I won't be investing.

Thanks for the feedback beagle, appreciate it.

[sb9]

For anyone interested, just hit 9c on ASX..

[silverblizzard888]

$106 million market cap with about $45 million cash (based on last interim report and recent raise), it doesn't seem like a bad value proposition.

[sb9]

Did I spot an upgrade to EBITDA hidden in today's announcement.

-Previous guidance of $6.0m to $6.5m underlying EBITDA for FY 31 March 2020 was given on 28 November 2019 but withdrawn on 24 March 2020 after all NZ centres were closed when NZ went into Covid-19 Alert Level 4. This was a cautionary measure based on uncertainty around revenue and the government wage subsidy.

- EVO advises that underlying EBITDA for FY 31 March 2020 will be within the range of $7.8m to $8.2m.

[Longhaul]

Did I spot an upgrade to EBITDA hidden in today's announcement.

-Previous guidance of $6.0m to $6.5m underlying EBITDA for FY 31 March 2020 was given on 28 November 2019 but withdrawn on 24 March 2020 after all NZ centres were closed when NZ went into Covid-19 Alert Level 4. This was a cautionary measure based on uncertainty around revenue and the government wage subsidy.

- EVO advises that underlying EBITDA for FY 31 March 2020 will be within the range of $7.8m to $8.2m.

That's what I thought so surprised it hasn't jumped this morning.

Edit: I guess we'll follow the ASX's lead on any re-rating.